There is a well known Medrash Rabbah that the Jews during the Plague of Blood sold water to the Egyptians for exorbitant amounts of money. The question is how was this allowed as we have a rule that we are not allowed to BENEFIT from Miracles selling the water would seem to be a physical enjoyment of the Miracle?

Can you cite where we know that rule from? I've never heard of it.
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Isaac MosesJan 2 '11 at 21:23

Simchas Torah, the footnote does not bring a source for your "rule". What is the source for "we have a rule that we are not allowed to profiteer (sic!) from Miracles"?
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YahuJan 3 '11 at 8:00

Ok sorry I misunderstood first of all the word profiteer is too strong of a word no actually it is wrong What it should say is you may not BENEFITING FROM MIRACLES as the gwmara says in TA'ANIS 25 where the gemara question how Chaninah ben Dosa was able to say the one who said oil shall burn so to vinegar as again the gemara questions how was he able to you may noy Benifit from miracles
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SimchasTorahJan 3 '11 at 13:24

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The phrase "Blood money" means "money paid by a murder to the family of his victim as punishment for his crime." Since that's not what is meant in the question, and can be potentially misleading, I recommend that the title be revised.
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ShmuelDec 14 '11 at 22:54

Actually if the egyptian are so strong they can enslave israelites, why do they bother paying hefty price for water? Why not just seize?
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Jim ThioDec 22 '12 at 11:28

2 Answers
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The profit was from the natural water that we sold them. The miracle was that their own water became blood. The miracle drove up the price of water from zero to something. The profit was an indirect result of the miracle.

Yes one, anwser is according to the Shemos Rabba that the water in Goshen (place where jews lived) did not turn into blood. Also the Pardes Yosef says the water didnt turn into blood. Only when the Egyptians tried to drink from it did it turn to blood. He learns it out from the extra words in the pasuk that the fish died. Therefore they did not receive direct benefit from the miracle. Since they sold the Egyptians water not blood.